2014 California Conforming-FHA-Jumbo Loan Limits by County

After much talk of reducing the maximum Conventional Conforming and High Cost (Jumbo) County loan limits in California for 2014, FHFA announced the $417,000 loan limits will remain unchanged for Fannie Mae/Freddie Mac Conventional financing.

FHA has ‘floors’ and ‘ceiling’ max loan limits that are based on the national conforming loan limit, which is why the FHA loan limit varies by county.

Loan limits for the last 5 years have been directed by The Housing and Economic Recovery Act (HERA) and Economic Stimulus Act (ESA) of 2008 that temporarily increased the maximum Conventional and FHA conforming loan limits for mortgage loans acquired/secured by Fannie Mae/Freddie Mac Conventional financing loan programs or insured by FHA.

Mortgages eligible for purchase by Fannie Mae, Freddie Mac or insured by FHA are referred to as conforming loans because they ‘conform’ to their published loan limits and underwriting guidelines.

High Balance or Conforming Agency Jumbo loans are terms used to describe Conventional loan amounts in high cost counties between $417,000 to $729,500.

A true Jumbo portfolio loan is needed when a loan amount is higher than what the maximum FHA or conforming loan limit allows.

Why Would FHA Reduce their Maximum Loan Limit for 2014?

FHA doesn’t believe their role should be in helping ‘high end’ buyers finance homes. Carol Galante, the FHA Commissioner, has stated on numerous occasion they want to reduce FHA’s role (and exposure) in the U.S. mortgage market and encourage private capital to step in and fill that need.

Private capital would be the same entities (investment bankers) that created fraudulent stated income/no doc sub-prime and Alt-A loan loan products that brought our economy to it’s knees in 2008.

California 2014 Maximum Conforming & FHA Loan Limit by County

County Name

FHA Loan Limit

Conventional Loan Limit

ALAMEDA

$625,500

$625,500

ALPINE

$463,450

$463,450

AMADOR

$332,350

$417,000

BUTTE

$293,250

$417,000

CALAVERAS

$373,750

$417,000

COLUSA

$397,500

$417,000

CONTRA COSTA

$625,500

$625,500

DEL NORTE

$311,250

$417,000

EL DORADO

$474,950

$474,950

FRESNO

$281,750

$417,000

GLENN

$287,500

$417,000

HUMBOLDT

$327,750

$417,000

IMPERIAL

$325,000

$417,000

INYO

$369,150

$417,000

KERN

$368,750

$417,000

KINGS

$325,000

$417,000

LAKE

$4011,250

$417,000

LASSEN

$285,500

$417,000

LOS ANGELES

$625,500

$625,500

MADERA

$425,000

$417,000

MARIN

$625,500

$625,500

MARIPOSA

$322,000

$417,000

MENDOCINO

$373,750

$417,000

MERCED

$472,500

$417,000

MODOC

$271,050

$417,000

MONO

$529,000

$529,000

MONTEREY

$483,000

$483,000

NAPA

$529,250

$592,250

NEVADA

$477,250

$477,250

ORANGE

$625,500

$625,500

PLACER

$474,950

$474,950

PLUMAS

$336,950

$417,000

RIVERSIDE

$355,350

$417,000

SACRAMENTO

$474,950

$474,950

SAN BENITO

$625,500

$625,500

SAN BERNARDINO

$355,350

$417,000

SAN DIEGO

$546,250

$546,250

SAN FRANCISCO

$625,500

$625,500

SAN JOAQUIN

$304,750

$417,000

SAN LUIS OBISPO

$561,200

$561,200

SAN MATEO

$625,500

$625,500

SANTA BARBARA

$625,500

$603,750

SANTA CLARA

$625,500

$625,500

SANTA CRUZ

$625,500

$625,500

SHASTA

$273,700

$417,000

SIERRA

$304,750

$417,000

SISKIYOU

$293,750

$417,000

SOLANO

$400,200

$417,000

SONOMA

$520,950

$520,950

STANISLAUS

$276,000

$417,000

SUTTER

$425,000

$417,000

TEHAMA

$312,500

$417,000

TRINITY

$271,050

$417,000

TULARE

$325,000

$417,000

TUOLUMNE

$331,200

$417,000

VENTURA

$598,000

$598,000

YOLO

$474,950

$474,950

YUBA

$425,000

$417,000

Where Did FHA Loan Limits Fall the Most?

In California, we saw a significant decrease in FHA loan limits which can be viewed here on the Wall Street Journal.

Which Loan Should I Apply For – FHA or Conventional Financing?

The answer to that question is usually determined by 50 bazillion other variables. Contact me or call (951)-215-6119 so we can do a side by side comparison and which one meets your needs.